IDEX Corporation (IEX)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.07 | 88.60 | 95.80 | 100.38 | 97.94 | 98.30 | 101.26 | 98.40 | 87.77 | 86.97 | 92.91 | 81.69 | 79.91 | 83.77 | 89.15 | 91.83 | 78.21 | 80.81 | 80.12 | 79.57 |
| Days of sales outstanding (DSO) | days | 47.69 | 47.69 | 49.95 | 49.74 | 50.79 | 48.03 | 52.25 | 52.41 | 47.05 | 50.24 | 51.35 | 51.78 | 45.49 | 42.91 | 41.34 | 48.51 | 43.63 | 46.28 | 47.62 | 48.86 |
| Number of days of payables | days | 35.90 | 34.97 | 37.67 | 43.57 | 43.45 | 42.45 | 47.46 | 48.27 | 42.37 | 43.22 | 46.13 | 45.96 | 41.89 | 37.33 | 37.70 | 42.53 | 36.90 | 39.16 | 42.74 | 42.83 |
| Cash conversion cycle | days | 95.86 | 101.31 | 108.09 | 106.55 | 105.28 | 103.89 | 106.04 | 102.54 | 92.45 | 93.99 | 98.12 | 87.52 | 83.50 | 89.34 | 92.79 | 97.81 | 84.94 | 87.92 | 85.00 | 85.59 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.07 + 47.69 – 35.90
= 95.86
The cash conversion cycle for Idex Corporation has exhibited some fluctuations over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash receipts from sales.
In Q4 2023, the cash conversion cycle decreased to 95.86 days, showing an improvement in the company's ability to manage its working capital efficiently compared to the previous quarter. However, this improvement follows a trend of increasing cash conversion cycles in the preceding quarters.
Despite the recent improvement, the company experienced longer cash conversion cycles in Q2 and Q3 of 2023, which may indicate delays in collecting cash from sales or difficulties in managing inventory levels effectively.
Comparing the current cycle to the same quarter in the previous year, Q4 2023 shows a slight improvement over Q4 2022 when the cycle was 105.28 days. This suggests that Idex Corporation has made some progress in streamlining its working capital processes over the past year.
Overall, the fluctuations in the cash conversion cycle indicate some variability in Idex Corporation's ability to efficiently manage its working capital and convert investments into cash. Further analysis of factors impacting inventory management and accounts receivable turnover may provide insights into areas for improvement to optimize the company's cash conversion cycle in the future.
Peer comparison
Dec 31, 2023